Vertically Integrated Cannabis Grower
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Financial Advisor
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Jeff Armstrong
Partner, Partners
Jeff Armstrong has more than 35 years of experience in operations, finance, and general management.
Tim Skillman
Partner, Partners
Tim Skillman is a highly experienced and successful senior executive with valuable management, consulting, and finance expertise.
- Actively assisted in identifying replacement lenders
- Assisted in amending current credit agreement including incremental funding for future acquisitions
The company was a vertically integrated cannabis grower, processor, marketer, and retailer who engaged CR3 Partners to assess the company’s business and performance improvement plan. CR3 reviewed historical performance and market variables, visited operations, and worked with ownership and lenders to assess operational performance and business prospects. The existing lending group allowed amendments to existing credit agreement, allowing management to focus on options for maximizing value and negotiating incremental funding.
The Situation
- Vertically integrated cannabis grower, processor, marketer, and retailer with two grow operations and seven retail stores
- After close of debt recapitalization, lender realized they missed several key variables in their underwriting
The Work
- Company engaged CR3 Partners to assess company’s business and performance improvement plan
- Reviewed historical performance, store sales trends, and various market variables to assess feasibility of company’s plan
- Visited growing, processing, and dispensary locations to assess impact of recent acquisitions and rebranding on attainability of forecast results
- Worked with ownership and senior leadership in developing assessment of operational and financial performance
- Worked with agent lender to assess business prospects and amendments to existing credit agreement
The Results
- Introduced company to prospective replacement lenders, resulting in LOI currently in negotiation
- Assisted company in persuading existing lender group to amend credit agreement to allow time to digest and optimize recent acquisitions, which allowed management and equity to focus on options for maximizing value, including negotiation of incremental funding for further acquisitions
- Developed trusted advisor relationship with principal owner, enabling CR3 to access capital markets for further assessment
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